Apple isn't the only brand that people line-up for. Irish clothing brand Primark has a similar cult following in Europe -- and it's coming to the U.S.
Primark's secret to success is simple: Cheap clothes. Really cheap clothes.
The average price for Primark clothes is about $6 an item.
"We want to be known first and foremost for amazing prices," says John Bason, finance director of Primark's parent company Associated British Foods (ASBFY).
Prices in Primark stores may be similar to what you find in Walmart (WMT). But the store atmosphere is very different. It strives to be young and edgy -- similar to H&M or Forever 21.
In September, Primark opened its first U.S. store in Boston. There was a lot of promotion of the company's Irish roots -- it was founded in Dublin in that iconic summer of '69.
Next up? Seven more stores in America in the coming year, including one in the King of Prussia mall outside Philadelphia and one on Long Island, New York.
"If we're a hit with the American consumer, then we can move on from there [across the country]," Bason told CNNMoney.
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Sales are booming in Europe
While few Americans have heard of Primark, the brand does nearly $8 billion in sales -- double what Abercrombie & Fitch (ANF) does.
Primark is the epitome of "fast fashion" where stores change merchandise every few weeks to keep up with trends. Instead of four seasons, there are numerous "mini seasons."
It's been a profitable formula. Sales are up 115% from 2009 to 2014.
Growth has skyrocketed as Primark opened stores across most of Europe in the past decade. There's even one planned for the high-fashion capital of Milan, Italy.
There's a reason it's called 'Primania'
Hana Ben-Shabat, a partner at A.T. Kearney who studies the retail sector, remembers the day that Primark opened on one of London's main shopping streets.
Lines stretched around the building, spilling onto other streets, as people waited for the doors to open. Europeans have taken to calling it "Primania." There was a special offer that day on pink "fur" jackets.
"I actually think they have the potential to be a game changer in the U.S.," says Ben-Shabat.
Primark's biggest challenge is simply building up the brand recognition in the U.S. where there's a lot more competition. Can Primania really happen in America?
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How cheap clothes get made
Primark also isn't without controversy. There have been questions about the conditions and pay of workers who make such cheap clothes.
The Dhaka, Bangladesh factory that tragically collapsed in April 2013 killing over 1,100 and injuring thousands was making merchandise for Primark, among other retailers including Walmart.
Primark now has a "mass mobilization" of ethics auditors. Bason says the company did about 2,000 audits of suppliers last year. But some are not convinced.
"We have no reason to believe Primark's practices have changed," says Owen Espley, who leads the campaign against sweatshops for War on Want. Espley's group wants the British government to regulate UK retailers to ensure they give overseas workers a living wage and safe conditions.
Primark manages costs aggressively
Primark defends its business, saying it can undercut the competition on price because it negotiates aggressively and aims to make money by selling more clothes than other retailers.
It also manages costs by being smart on where it opens stores. It doesn't have any Manhattan stores planned, for example. It's going to open in the Freehold Raceway Mall in New Jersey instead.
As the company moves into the U.S., the focus is learning what works and what doesn't.
Primark sells everything from baby clothes to bed linens to men's and women's fashion and even some home goods. Finance director Bason says all of his childrens' towels and sheets come from Primark.
While American consumers are used to H&M, "Primark takes the very fashionable, very low price to a different level," says Ben-Shabat of A.T. Kearney.
CNNMoney (New York) First published October 23, 2015: 4:00 AM ET
FAQs
Why are clothes at Primark so cheap? ›
"Primark's prices are low because Primark operates differently to other retailers," he said. According to Martinez de Larramendi, here's why: Primark orders clothes in very big volumes so suppliers are able to offer lower prices to Primark because they can achieve efficiencies of scale, such as ordering fabric in bulk.
Is Primark a brick and mortar? ›We're primarily a brick-and-mortar retailer, even in the U.K., where we're testing click-and-collect.
Why Primark is so successful? ›It is price combined with an overwhelming large number of fashion items to choose from in their stores. At the bottomline, they sell the kid-in-the-candy-store feeling, the Oh-My-God-I-can-buy-all-of-this-and-still-have-money-left experience. That is their value proposition and that is why they are successful.
How do you wash Primark clothes? ›With the exception of underwear, bedding and towels, most clothes can be cleaned at 30C or less. Lower wash temperatures use less water and energy. Plus washing inside out, washing with similar colours, closing zips and emptying pockets can all help to prolong the life of your clothes.
Who is Primark target customer? ›PRIMARK has targeted customers under the age group of 35 years which are fashion conscious. It offers products at a very competitive prices and with a reasonable quality this strategy used by PRIMARK is known as value for money strategy.
Where does Primark get their clothes from? ›Like almost every other fashion retailer on the high street, Primark clothes are made in countries including Bangladesh, India, Pakistan and China. Primark has a strict code of conduct in place designed to ensure that the factories it works with respect the rights of their workforce.
What did Primark used to be called? ›And the Primark we all know and love today, the retailer with over 370 stores around the world, began as Penneys: a single store on Mary Street in Dublin city centre back in 1969.
Why won't Primark sell online? ›Williams acknowledges that Primark's low prices make ecommerce challenging. “Given the Primark low pricing and narrow gross margin structure, it is difficult for the online channel to be profitable,” he says.
What problems does Primark have? ›Our research highlights several ethical issues with Primark, including environmental reporting, pollution and toxics, workers' rights, animal rights, animal testing, use of controversial technologies, anti-social finance and likely use of tax avoidance strategies.
Is there a Primark in the US? ›Primark is continuing its U.S. retail expansion. The latest addition to their store fleet is a new Brooklyn, New York, store. The Fulton Street store at City Point is Primark's 16th store in the United States and is part of the retailer's U.S. growth plan to reach 60 stores by 2026.
Is Primark cheaper in Spain or UK? ›
The prices in Primark stores throughout the UK are all the same, but due to fluctuating exchange rates between the pound and euro it would not be possible for the prices to be the same over here as they are in Spain. Generally prices over there are similar to over here though.
Should I wash Primark clothes before wearing? ›Dr Faheem Latheef advises everyone to give garments a wash before wearing them for the first time. He says the biggest risk comes from in-store purchases which are often tried on or returned and could be covered in bacteria, viruses or fungi.
Do Primark clothes run small? ›But others commented sizes change dramatically from store to store, with Marks & Spencer sizing running big, while Primark sizes are small. Chloe-Mae picked up a few different sizes and filmed herself trying on the largest size in the now viral clip been viewed more than 400,00 times.
Can you wear unwashed clothes from the store? ›Wearing new clothes straight from the store — without washing them — probably won't kill you, but it can cause some nasty reactions, and has the potential to pass along some ickiness that maybe you'd rather not know about.
What gender does Primark target? ›primark.com Audience Demographics
primark.com's audience is 38.30% male and 61.70% female.
From great quality essentials to standout womenswear, menswear and kidswear style, plus our beauty, homeware and accessories, there's something for everyone at Primark.
Who are Primark's main competitors? ›- Zara.
- H&M.
- Marks and Spencer.
- Burberry.
- Prada.
- Gucci.
- Chanel.
How much does Primark pay? The average Primark salary ranges from approximately £20,000 per year for a Retail Sales Associate to £64,500 per year for a Project Manager. The average Primark hourly pay ranges from approximately £7 per hour for a Retail Assistant Tiller to £8 per hour for a Sales Advisor.
What is Primark famous for? ›Primark is a leading international clothing retailer employing more than 72,000 colleagues in 15 countries – and growing. Everything we do is built around everyday affordability: from great quality essentials to stand-out style, trend setters to multi-generational families, everyone is welcome at Primark.
Where is the biggest Primark in the world? ›PRIMARK | Primark Birmingham | Building the World's Biggest Primark! If playback doesn't begin shortly, try restarting your device.
Is Primark owned by jcpenney? ›
...
Primark.
| The original shop on Mary Street, Dublin | |
|---|---|
| Industry | Retail |
| Founded | 13 June 1969 in Dublin, Ireland |
| Founder | Arthur Ryan |
- Number of stores: Zara has more than thousand five hundred stores. Primark has under the three hundred stores. - Market: Primark is more focused in European markets.
Why do Irish people call Primark Penneys? ›Primark was founded by Arthur Ryan in 1969 as Penneys, a single shop in Mary St, Dublin, with the goal of bringing affordable clothing to Ireland.
Can you buy Primark on Amazon? ›How do you buy Primark products online? While you can't guarantee authentic items on Amazon, you can find some Primark products on there. Simply head to the Amazon website and search 'Primark'. A range of homeware products and pyjamas comes up and even some clothing by its in store brand Atomsphere.
Can I buy Primark stuff online? ›You will be able to browse the range and checkout online, choose your preferred collection day for free and then collect from a dedicated collection point at your nominated store.
Is Primark starting online shopping? ›Primark launches online shopping with click and collect service.
Where do Primark get their clothes from? ›Like almost every other fashion retailer on the high street, Primark clothes are made in countries including Bangladesh, India, Pakistan and China. Primark has a strict code of conduct in place designed to ensure that the factories it works with respect the rights of their workforce.
What are the weaknesses of Primark? ›While Primark offers trendy clothes at amazingly low prices, many customers complain that its products are of poor quality and made for the masses with no unique style. With the focus now on climate change, many also decry the lack of eco friendly practices and products on offer by the fashion giant.
What is the Primark controversy? ›Primark is battling to save its reputation after more revelations of illegal labour practices and poor working conditions in its supply chain emerged in January. One of Primark's UK suppliers was found to be employing illegal workers and paying staff less than the minimum wage.
Is Jcpenney the same as Primark? ›However, the Penney name could not travel to Britain as the American retailer, J. C. Penney, had the right to use the name in the region. Primark was the name born from that and, since then, all stores opened around the world have adopted it.
Does Primark sell online? ›
You will be able to browse the range and checkout online, choose your preferred collection day for free and then collect from a dedicated collection point at your nominated store.
Who is Primark's biggest competitor? ›- Matalan Retail Ltd. 13,531. $1.4B.
- River Island. 8,507. $1.2B.
- New Look Retailers Ltd. 15,451. $14.5B.
- Next PLC. 26,836. $5.7B. ...
- Arcadia Group Ltd. 11,904. $1.3B. ...
- Boohoo.com PLC. 5,720. $2.4B.
Is Primark ethical? Our research highlights several ethical issues with Primark, including environmental reporting, pollution and toxics, workers' rights, animal rights, animal testing, use of controversial technologies, anti-social finance and likely use of tax avoidance strategies.
Who are Primark's biggest rivals? ›primark.com's top 5 competitors in January 2023 are: tkmaxx.com, wilko.com, boots.com, hobbycraft.co.uk, and more. According to Similarweb data of monthly visits, primark.com's top competitor in February 2023 is tkmaxx.com with 10.1M visits.
Where is the biggest Primark store? ›2016 – We open our doors in Arese, Italy, home to our first Italian store. Today we have 13 stores in Italy, including our newly-opened Milan flagship store. 2019 – The world's biggest Primark opens in Birmingham, UK, featuring five floors, and over 160,000 feet of retail space.
Who is Primark owned by? ›...
Primark.
| The original shop on Mary Street, Dublin | |
|---|---|
| Website | primark.com |
| Footnotes / references | |